<span style=”color: #383838; font-family: Georgia, ‘Times New Roman’, serif; font-size: 19px;”>Creating shared value and capitalism go hand in hand. To create shared value, you must apply the capitalist model to addressing social issues such as hunger, environment, and health. People often get confused between corporate social responsibility and creating shared value, however when researched further you can see there is quite a big difference between the two. The mindset behind corporate social responsibility is that companies need to be good corporate citizens, contribute to the community, and comply with community standards. Is is based on redistribution, that you should take from the profits and donate. The original idea was to reduce harm and so a lot of companies set out to reduce the harm they were creating in terms of the environment and safety etc. Due to that the old-style mindset was that people thought being environmentally responsible was expensive however that’s where the difference between corporate social responsibility and creating shared value is clear, as the idea behind creating shared value is to separate social agenda vs business agenda. Being ‘socially responsible’ does not have to be expensive, in actual fact you should make money by being so. Companies can save money by using resources better, by saving energy and by thinking about reducing their packaging. It is not just about being fair and good, it is about doing business in a smart way. Creating shared value says that there are bigger opportunities than merely taking money from capitalism and investing it, instead companies should rethink how they practice capitalism. This procedure is business specific; every company will have to go about it in a different way. Creating shared value also goes against the idea that businesses should reduce the harm they are creating. It is not about reducing harm; it’s about creating value for social issues by reengineering a business model that will create a profit.</span>
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